Exempt gifts ‘can help reduce inheritance tax hit’

Posted 10/05/2012

Individuals looking to reduce the amount of inheritance tax that will be taken when they die have been given some tips on how they can do this.According to a report by Citywire, one of the best ways to do so is to use exempt gifts to hand money to a spouse or partner, as long as they are a resident of the UK.Donating money to charity – although only to organisations qualified as such by HM Revenue and Customs – is also a recommended way for people to cut the government’s take of their legacy.Museums, universities and the National Trust are among the other bodies that are able to receive donations that reduce an inheritance tax hit.Earlier in the year, a poll of financial advisers conducted by Octupus Investments revealed the majority believe there is a need for an overhaul of the current inheritance tax laws in the UK.Posted by Simon Crooks